Innovative Decision Thinking
through
Value Management (IDT)
Handbook
INDEX
INTRODUCTION 5
Objectives of Learning Programme 5
Breakdown Hours of Learning Programme: (notional hours) 5
Unit Standards & Qualifications Reference 5
Course Module Index 6
Introduction to Value Engineering 7
Problem Solving Idiom 7
Section Objective 8
Change 8
Managing Change 9
Terminology & Concepts 11
What is Value Engineering (VE) / Value Management (VM) 12
Definition 12
Typical process questions 14
The Value Engineering Think Plan 17
A brief history of Value Engineering 18
Why Value Engineering/Value Management 20
Value Engineering - Basic Terms 20
Benefits of Value Engineering 20
Measurement of Value 21
MAIN WORKBOOK 22
Section 1 - Human Dynamics 22
Change Vs Growth 22
Transactional Analysis 24
The Johari Window 25
Spiral Dynamics (vMemes) 26
Personal Profile 33
Selection of Participants 34
Paradigms 35
Group Think 35
Section 1 - Review 36
Section 2: Functional Thinking 37
Project context of application of Value Engineering/Value Management 37
Features of a Project 37
Project failures 37
VE / VM as VIP’s (Value Improvement Practices) 37
Time line for applying VIP’s to a Project. 38
Value Improving Practices (VIP’s) for Front-End Loading of a Project 38
The Value Management Think Plan 39
Value Engineering/Value Management the rationale 39
Value Engineering Definitions 39
VE Technique Index – Information gathering & Objective setting techniques 40
Information Pyramid 41
Where to begin? 42
Pareto’s Principle 42
Value Influence Curve 43
Scope Definition 44
Design to Cost Targets 45
Tangible Vs Intangible studies 46
Process steps for Value Management 47
Objective Setting 47
Objective Matrix - Example 51
Results to Achieve / Issues and Concerns Matrix – Example 52
VE Technique Index – Functional Analysis techniques 53
Measurement of Value 54
Rules of Function definition 54
Function Numerical Evaluation Matrix 58
Numerical Evaluation / Graph 58
Fast Diagramming 60
Redundancy Analysis 65
Example: Penlight Torch Assembly - Functional Definitions 66
Cost to Function Analysis 68
Example: SWOP BODY – Component Function / Cost Analysis 69
Section 2 - Review 71
Functional Thinking: Written Exam Questions with Answers 72
Section 3: Creativity 75
VE Technique Index – Innovative Decision Thinking techniques 75
Creative Process 76
Analogue/Digital Processing 77
QMind Profile 77
Hemispheric Characteristics 78
QMind Tabulation 79
Personal QMind Profile 80
The Supportive Environment 82
The Inhibitive Environment 82
Team Environment 83
The Individual 83
Process Focus 84
Brainstorming 85
Solution application example 86
Lateral Thinking 87
Brain Frequencies & Sound 89
Section 3 - Review 90
Creativity: Written Exam Questions with Answers 91
Section 4: Implementing Change 92
Evaluation 92
VE Technique Index – Evaluation processing techniques 92
Concept Repertoire 93
Star Grading 94
Perspective Model 95
PIN Evaluation 97
VE Technique Index – Investigation processing techniques 98
Scanning Frame 99
Life Cycle Cost Analysis (LCCA) 100
Simple and very effective Feasibility Study 102
Project Risk Assessment 103
Recommendation 104
VE Technique Index – Recommendation & Implementation processing
techniques 104
Management Reports 104
Action Programme 105
Status Audits 107
Section 4 – Review 108
Evaluation, Investigation & Implementation: Written Exam Questions
with Answers 109
Section 5: Review total Value Engineering Job Plan 110
Suggested Reading 112
Supportive Websites: 112
Section 6: Summative & Formative Exam 114
Exam Paper 114
Theoretical / Summative Assessment 114
Project Assignment 119
Project Template Instructions 120
Section 7: VE / VM Glossary (SAVE International) 124
Section 8: Unit Standards Details 127
INTRODUCTION
Innovative Decision Thinking through Value Management (IDT) is not simply a training course, but a value adding, innovative thinking methodology that equips one with much needed creative decision-making and group interaction skills. The programme contains techniques for improving designs, processes and productivity whilst overcoming problems associated with people, be they engineers, accountants, sales people, customers, suppliers or anyone requiring creative solutions for difficult problems. This dynamic methodology focuses the collective wisdom of a divergent group, where the process enables them to systematically define common objectives, functionally prioritising what needs to be done and then creatively identifying how best to achieve the desired results.
The unique and paradoxical combination of functional focus & creative thought will ensure that you are equipped to manage projects successfully.
Objectives of Learning Programme
An introduction to the advantages & applications of Value Engineering and Value Management with the objective of achieving; reduced costs, increased profits, greater value, team working, increased time savings, simplified procedures, improved resource usage, decreased project and future operation & maintenance costs.
On completion participants will be capable of:
- Understanding the significance of how changes in customer expectations, how technologies and processes affect present and future business practices and product designs.
- Defining functional requirements (the what’s) of a system, product or process in order to establish, & prioritise, the ‘life cycle’ value drivers.
- Applying creative thought processes (the how’s) enabling ‘out of the box’ thinking whilst maintaining required functional integrity & quality.
- Ensuring that the best choice solutions are adequately measured, evaluated & recommended for maximised value to the organisation.
Course Module Index
2